Technical Analysis – Palladium futures shift spotlight to 2018 lows
Palladium marks new lower low
Long-term support line attracts interest
Palladium futures could not build on December’s rebound, flipping backwards after confirming a double top pattern around the 1,250 number. The decline re-activated the long-term downtrend from the 2022 top, squeezing the price to a more than a five-year low of 853.49 on Monday.
While the market is within oversold territory according to the RSI and the stochastic oscillator, increasing the odds for a relief bounce, the bears may not abandon the fight yet until they touch the 2018 bottom of 812 and perhaps the 800 psychological level near the crucial support line from June 2022. Should downside forces dominate there, all the attention will turn to the 2017 base of 735.
If buyers put a strong footing near 850, the price may enter a recovery phase to test the 20-day exponential moving average (EMA) at 938. Beyond that, it may re-challenge the 995 resistance territory and perhaps attempt to reclaim the 1,000 psychological number. If those efforts prove successful, the bullish action could pick up steam towards the 1,095-1,135 constraining zone.
All in all, palladium futures look oversold, but unless the 850 region blocks the way down, selling pressures may continue till the 800 round level.Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
